Ciena (Nasdaq: CIEN) and Fujitsu are enjoying the benefits of a robust North American service provider optical market, which grew 18 percent year-over-year in the second quarter, according to a new Dell'Oro report.
"For North America, growth was due to service providers increasing metro capacity to enable better broadband services to residential and enterprise customers, resulting in more DWDM system deployments," said Jimmy Yu, vice president of optical transport research at Dell'Oro.
Ciena won't release its earnings until Sept. 4, but the vendor already enjoys a strong presence with at least three major North America-based service providers, including AT&T (NYSE: T), Sprint (NYSE: S) and Verizon (NYSE: VZ).
Sprint recently announced that it enabled 100G Ethernet wavelength services and set a path for 400G optical on its network, while Verizon completed a 200G technology trial on an operational long-haul network segment between New York and Boston. Both of these networks leveraged Ciena's gear.
Fellow analyst firm Infonetics said that Ciena could potentially benefit from AT&T and Verizon spending more on upgrades of their network routes to 100G this year.
Led by Huawei and ZTE, the Asia Pacific optical market is rising due to wireless operators in China upgrading backhaul networks to support the buildout of new LTE networks and supporting long-haul applications.
"For Asia Pacific, the majority of the growth was due to Chinese service providers expanding their mobile LTE network, resulting in a significant roll out of optical packet backhaul systems and DWDM long haul systems for inter-provincial capacity," Yu said.
- see the release
Huawei, Alcatel-Lucent, ZTE lead optical market share, says Infonetics
Alcatel-Lucent's IP division revenues rise 25 percent to $824M
Sprint enables 100G Ethernet wavelength services, sets path for 400G
Verizon wraps up 200G trial on live NY-to-Boston network link